When a lottery licence is issued, the licensee becomes responsible for the conduct and management of the lottery event. Provisions in the Gaming Control Act, 1992 and its Regulations allow the licensee to use the services of a Gaming-Related Supplier to assist in the conduct of the event, but these suppliers may only perform certain tasks. Some tasks cannot be delegated, and must be performed by bona fide members of the licensed organization.
Refer to the relevant chapter for each type of licensed lottery event for further information.
3.5.1.GENERAL ADMINISTRATIVE RESPONSIBILITIES
The licensed organization must perform the following general administrative functions:
- filing applications;
- placing and paying for any advertisements;
- setting up and maintaining the lottery trust account(s) and separately distributing the proceeds for approved purposes;
- reconciling all receipts, providing a float for making change, and depositing all receipts into the designated lottery trust account;
- keeping all necessary records;
- preparing the financial report and submitting it to the licensing authority; and
- communicating with the licensing authority.
3.5.2 BONA FIDE MEMBERS
According to the terms and conditions for lottery licences, bona fide members of the eligible charitable organizations must conduct and manage the licensed lottery scheme. This is a legal requirement. Without the participation of bona fide members, as set out in the licence, the lottery becomes illegal. In such a case, the licensing authority may suspend licences for future lottery events. A bona fide member for the purposes of lottery licensing is an individual who:
- meets the membership criteria set out in the constituting documents for the organization;
- has been admitted as a member in accordance with the requirements set out in the constituting documents;
- remains a member in good standing in accordance with the constituting documents; and
- participates in the activities of the organization.
A bona fide member cannot be a member of convenience. That is, he or she cannot have been admitted to the organization solely to assist in the operation of the lottery scheme.
A bona fide member of an organization that is a member of a Hall Charities Association cannot be a bona fide member of another member organization of the Hall Charities Association, unless that individual meets the membership requirements for the other organization as well.
3.5.3. GENERAL CONFLICT OF INTEREST GUIDELINES
The following conflict of interest guidelines have been established to give the public confidence in the integrity of charitable organizations conducting lottery events. As this is a sensitive issue, licensees must be vigilant in preventing any possibility of a potential or perceived conflict of interest.
- No member, principal officer or paid staff of an applicant organization may be involved, in any way, in the approval of a licence application and/or the conduct and management of a licensed event. For example, a member of a municipal council who is also a member of the applicant organization must refrain from offering an opinion or vote on the granting of the licence, must not sign the application and must not have any direct or indirect dealings or decision-making authority with respect to the licensed event.
- No person assisting in the conduct and management of a lottery event may have any monetary interest in any card, ticket or bet, or have a chance to win a lottery prize in any way.
- No designated member responsible for the conduct of the licensed lottery, or volunteers assisting with the lottery, may have any direct or indirect personal financial interest in the funds raised.
Examples of conflict of interest
- A coach for a sporting organization who receives payment from lottery proceeds for coaching services cannot also be a designated member-in-charge at a lottery event.
- The owner of a sporting goods store who is the designated member-in-charge for a sporting organization cannot use lottery proceeds to purchase equipment for the players from his/her sporting store.
- An Operator of a bingo hall cannot conduct or assist with bingos in his/her hall for a charitable organization of which he/she is a member.
- The paid caller for a bingo hall cannot be a volunteer for a licensee or play bingo at any time in a bingo hall where he/she works.
Conflicts of interest could jeopardize the public’s confidence in the integrity of licensed gaming events. Although conflicts of interest may not result in criminal charges, they could affect the reputation of the organization in question, and could even jeopardize the organization’s future licensing privileges. Conflict of interest guidelines are set out in the relevant chapter for each type of licensed lottery event.